An item pulled from the consent agenda during the May 13 City Council meeting became the most controversial topic of the evening, pitting Place 6 Council candidate Maria Talamo against the current Council.
The item was a zoning case, where staff had recommended amending the zoning ordinance for General Office to allow ambulatory surgery centers (ASC) and drug stores. The ordinance change was prompted by Dr. Robert Wills, who wants to build an ASC in Cedar Park. ASCs, more commonly referred to as day surgery centers are prevented from providing inpatient or overnight care.
Cedar Park Senior Planner Amy Link said city staff recommended changing the GO zoning to allow ASCs and drug stores as opposed to altering the already existing Hospital zoning because that would not have been in line with the city’s future land use map. The GO zoning allows medical offices and clinics already.
Talamo, a registered nurse and medical executive, said since Cedar Park gave the Cedar Park Regional Medical Center $4 million in infrastructure incentives and $5 million in tax abatements, the city has too much invested in the hospital to allow other businesses to compete directly with the hospital.
“Why should we, the taxpayers, invest $9 million to bring the hospital to our community, borrow $4 million of that $9 million and incur interest expense to do it, not build parks, roads or other community assets with the money, then undermine the success of the hospital by allowing anyone to open an ASC in any building zoned General Office?” Talamo asked.
Mayor Pro Tem Matt Powell said the city already hosts an ASC in a building owned by CPRMC.
“If you’ve got someone competing with you in a building you own, why wouldn’t you kick them to the curb?” Powell asked Talamo.
CPRMC CEO Tim Adams, attending the May 13 meeting, said his main objection to ASCs was that they would skim insured patients from CPRMC, leaving the hospital with a disproportionate number of indigent patients. This is an assertion Wills’ land use attorney, Nikelle Meade, disagreed with.
“The ASCs do provide indigent care,” Meade said. “They are part of that as well, so it’s not true to say that if these businesses move into the community they’re going to suffer.”
Meade said ASCs and hospitals can coexist happily.
“Our doctors are already treating citizens of Cedar Park who are going into Austin to receive treatment. The patients already exist. This isn’t about going over to the hospital and finding patients,” Meade said.
Council resoundingly rejected the idea that the city should protect the hospital from competition, creating what several councilmen called a monopoly.
“We’ve had developers come to us and say, ‘Don’t zone anyone else for a movie theater. We want to have the only movie theater in town,’ and we didn’t do it because I just think that’s abusive zoning,” Caputo said. “That’s not our job to protect people with our zoning.”
After going into executive session, the Council came back and voted 6-1 to approve the zoning ordinance change. Powell voted against it, saying he would be more comfortable with a hospital zoning. Council then approved an application to change a parcel of land at 351 Cypress Creek Road to the newly amended GO zoning. Currently, International Bank of Commerce owns the land, but Wills said he expects to close on the land in June and he hopes the ASC will be open by the end of the year. Wills said the building will house an MRI clinic and a pharmacy as well.
“I think it’s going to have a great economic impact. The surgery center is going to employ between 30 and 35 people when it’s fully ramped up,” Wills said.

BCRWS
The Council discussed amending the city’s agreements for the Brushy Creek Regional Wastewater System by allowing Leander to buy into the system. The agreement approved by the Council allows Leander to purchase and have ownership and capacity interest in the North Brushy Creek Interceptor and the North Brushy Creek Interceptor Extension Phases 1 and 2. Those lines are necessary for Leander to connect to the system overall. The overall agreement includes Cedar Park, Highlands at Mayfield Ranch, Ltd., Parkside at Mayfield Ranch, Ltd., Caballo Investment, LP, Highlands at Mayfield Ranch Municipal Utility District and now Leander.
Leander will share ownership of NCBI and NCBI 1, but it will have sole ownership of the phase 2 extension. Leander will reimburse Cedar Park $3,763,305 for the NBCI and $4,107,765 for phases 1 and 2 of the extension. Leander will reimburse Highlands, Parkside and Caballo as well, making the total amount of money the city will reimburse for the extension projects $7.18 million.

Fire truck
The Cedar Park Fire Department will replace Engine 3 with a truck from Smeal Fire Apparatus Company for no more than $568,910. The money was approved in the Fiscal Year 2010 approved budget in the general fund balance, but staff had asked to postpone purchasing the truck until it had analyzed the outcome of the 2009 fiscal year. After finishing the analysis, staff recommended purchasing the truck.
The truck is a Spartan Gladiator Cab with a Caterpillar C13 engine. Once the department receives the new truck it will retire the current Engine No. 3 into reserve and sell the truck in reserve now, Engine No. 12. Park street project
The Council awarded a $4.2 million construction bid to FTWoods Construction Services for the Park Street reconstruction and waterline project. The Council approved the project under the 2009 General Obligation Bond and will improve roadways, intersections and water lines.

Employee insurance
City employees may continue their health insurance after retirement, and the current retirement reimbursement program provides a subsidy for retired employees to put toward the cost of the insurance. The city commissioned a study to look at long-term financial implications of that program as the city grows, since more and more employees will be eligible to retire and access that subsidy.
The study, performed by Gabriel, Roeder, Smith and Company, found the potential cost of the program based on current employment levels to be $14,064,432. The city currently budgets $762,303 toward financing the program, but that cost is set to grow annually. That growing cost, the city said, leads to a question of whether the city can afford the program.
To make a decision on the issue, the Council had GRS&C create five scenarios. Of those scenarios, the Council asked for city staff to bring option D back as a referendum. The option includes limiting and reducing the city’s healthcare liability without cutting benefits for current city employees and retirees.